TY  - RPRT
        AU  - Batista, Catia
AU  - McKenzie, David
        TI  - Testing Classic Theories of Migration in the Lab
        PY  - 2021/Sep/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 14717
        UR  - https://www.iza.org/publications/dp14717
        AB  - We test different classic migration theories by using incentivized laboratory experiments to investigate how potential migrants decide between working in different destinations. We test theories of income maximization, skill-selection, and multi-destination choice as we vary migration costs, liquidity constraints, risk, social benefits, and incomplete information. The standard income maximization model leads to a much higher migration rate and more negative skill-selection than occurs when migration decisions take place under more realistic assumptions. The independence of irrelevant alternatives assumption mostly holds when decisions just involve wages, costs, and liquidity constraints, but breaks down once we add risk and incomplete information.
        KW  - migrant selection
KW  - destination choice
KW  - lab experiment
KW  - IIA
        ER  -